We all are fond of using debit cards and credit cards as well. But, have you noticed what's the exact difference between a debit card and a credit card in general? Let's look for some key differences between these two instruments.Debit card vs Credit card:

Which funds can be used? Debit card allows you to use funds available in your savings/current account only. While Credit card can be used upto the credit limit sanctioned to you in your credit card account. The lender sets a specific credit limit over which you cannot use your credit card.

Interest: Interest is charged on the outstanding balance in your credit card account. You are basically using the lender's money to make payments. This is not applicable in a debit card.

Repayment: You have to repay the credit that you have utilised while using your credit card. You need to clear your credit card bill in time to avoid any interest charges. However, when you use a debit card, that's basically your own money in your bank account. So, nothing to repay in that case.

From safety point of view, what I feel is that using a credit card is still better than a debit card especially while making online purchases.

What other key differences can you spot between a debit card & a credit card? Do jot down your observations here.

@harleen I normally use a credit card only while shopping online or at stores. That gives me some cashback also. I get some credit period and don't have to immediately clear dues. But, I usually clear my credit card bill on time.

Thank you for telling the main differences between a credit and debit card. Most of the people dont know about the difference between them. This article can help them to understand the uses of credit and debit cards. They might use the credit card more often now as it helps to pay the payment more easily.

@Smart-Investor I wonder how many such more credit cards will be launched Paytm First credit card then this one Ola money SBI credit card, now which is next? The list of credit cards in India is just increasing day by day.

@Ishu A good credit card. I will surely apply for this one soon. I am a regular paytm user and find their services really good. I’ll surely try this new Paytm First credit card and share my feedback on it

@jatinderchd Hi, the RBL Platinum Maxima Credit card seems quite useful and the rewards programme is great. But, the membership fee of Rs.2000 is bit higher for me. I was looking for a card that has lesser joining fee and gives good reward points also. Can anyone suggest a good rewards credit card?

It is not the number of credit cards you have that improves your credit score. It depends on your usage. You need to take care of cash advances, late payments, paying total amount due before the due, etc. All of this will help in improving your credit score

@KP_Trader Hey, that seems to be a cool idea! But, is it practically possible to keep the credit utilization ratio below 30% for that matter? I mean, in such a high cost of living, growing prices of products, our rising utility bills, is it really manageable to use lesser credit options?
The salary credited to my account is just spent on paying EMIs and some other normal costs. So, I have to rely on my credit card to pay other bills and fees. I pay my bills on time.
But, I am still struggling to get that perfect credit score since the past few months. I really wonder how people just manage to have a high credit score. Any ideas for it.

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